Sometimes, in the excitement of closing a deal, business owners may agree to insurance requirements that their current policy cannot honor. In cases like this, it is during the issuance of the required certificate of insurance (COI) that this discovery is made. This could lead to a delay in issuing the certificate as the two companies iron out the insurance requirement details. In an effort to head off such confusion, below we have outlined some common insurance requirements and discuss what they are and how to get them on your policy, if needed.
The most basic insurance request is to simply present evidence of insurance through a COI. This is a very basic request that does not permit any special privileges to the certificate holder. Simply supply your Beckerman agent with the name and address of the entity requesting the certificate and you will receive the COI within 24 hours.
Sometimes a client will request to be named an Additional Insured on your policy. By adding your client as an additional insured on your policy, you are asking your carrier to utilize your policy to defend the certificate holder, should both of you be named in a lawsuit. If you are in the type of business where that requirement is customary, you may already be aware whether or not your policy includes a Blanket Additional Insured form. If you aren’t sure if your policy includes that form, there may be an additional charge per additional insured. Contact your Beckerman agent to confirm your policy status.
The following coverages are somewhat typical, however they are usually not included automatically in a policy. A policy holder must request them and there will be a cost either on a per entity or blanket basis. Depending on how many clients you have requesting each of these coverages, a blanket basis could be a more economical approach.
“30 Day Notice of Cancellation”- When a carrier agrees to this, they are saying that they will take on the responsibility of letting the certificate holder know that your policy will cancel 30 days prior to the actual cancellation.
“Waiver of Subrogation”- When a carrier grants a waiver of subrogation, they are waiving their right to sue your certificate holder in the event the carrier is forced to pay out on a claim for which the certificate holder was liable.
“Primary and Noncontributory,” – When a certificate holder asks for this, they are asking that your insurance be the first and only insurance that responds to a loss. They are asking you to not require their insurance be utilized to cover a loss.
While you may have to comply with the your client’s insurance requirements, knowing what they are asking for, and how to get them on your policy, will help you in complying with and providing evidence insurance much more quickly.